{"id":60052,"date":"2020-05-09T12:31:21","date_gmt":"2020-05-09T07:01:21","guid":{"rendered":"https:\/\/blog.forumias.com\/?page_id=60052"},"modified":"2020-05-09T12:31:21","modified_gmt":"2020-05-09T07:01:21","slug":"answereddiscuss-the-need-and-significance-of-draft-e-commerce-rules-2019-in-light-of-increasing-tentacles-of-e-commerce-in-indian-market","status":"publish","type":"page","link":"https:\/\/forumias.com\/blog\/answereddiscuss-the-need-and-significance-of-draft-e-commerce-rules-2019-in-light-of-increasing-tentacles-of-e-commerce-in-indian-market\/","title":{"rendered":"[Answered]Discuss the need and significance of draft e-Commerce Rules, 2019 in light of increasing tentacles of e-Commerce in Indian market."},"content":{"rendered":"\n\n\n
Demand of the question<\/u><\/strong><\/p>\n

Introduction. <\/strong>Contextual Introduction.<\/p>\n

Body. <\/strong>Mention the need, provisions and issue of draft e-commerce rules, 2019.<\/p>\n

Conclusion. <\/strong>Way forward.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

E-Commerce is a business model \u201cenables a firm\/individual to conduct business over an electronic network, typically the Internet.\u201d The consumer and seller or service provider interaction gets better and efficient.<\/em><\/p>\n

E-commerce business in India:<\/strong><\/p>\n

    \n
  1. E-commerce can be carried out for both wholesale trade or for retail trade (sale towards final consumption).<\/li>\n
  2. It can be either Business to Business (B2B) trading or Business to Consumers (B2C) trading.<\/li>\n
  3. There is no restriction on conducting e-commerce per se in India. However, certain restrictions exist, if e-commerce is being done by companies receiving FDI.<\/li>\n
  4. In India, 100% FDI under automatic route is allowed in Business to Business e-commerce since 2000.<\/li>\n
  5. A distinction is made between single brand retail (selling products of a single brand) and multi-brand retail with respect to permission for FDI and e-commerce.<\/li>\n<\/ol>\n

    Need for new e-commerce policy:<\/strong><\/p>\n

      \n
    1. There is no commonly accepted definition of e-commerce. Further, there is inadequate data on the trade of digital products. Both these shortcomings require effective policy making in the country.<\/li>\n
    2. The e-commerce market is expected to reach US$ 64 billion by 2020 and US$ 200 billion by 2026 from US$ 38.5 billion as of 2017. Thus there is a need for clearly laid-down rules for electronic commerce in the country.<\/li>\n
    3. E- commerce is currently regulated by multiplicity of government departments such as IT Department, industrial policy, revenue, and RBI. Hence, a national e-commerce policy would consolidate the various norms and regulations to cover all online retailers.<\/li>\n
    4. With the increasing online frauds, there is a need to strengthen the regulatory regime for protecting the consumer in the context of e-commerce<\/li>\n<\/ol>\n

      Main provisions Draft e-commerce policy:<\/strong><\/p>\n

        \n
      1. A common definition of electronic commerce for the purposes of domestic policy-making and international negotiations would be adopted.<\/li>\n
      2. It proposes a single legislation to address all aspects of digital economy and a single regulator for issues related to FDI implementation and consumer protection.<\/li>\n
      3. It mandates localisation of data in India. The draft also says the government will have access to data stored in India for national security and public policy objectives.<\/li>\n
      4. The draft policy proposes 49% FDI under the inventory model for Indian-owned and Indian-controlled firms to sell locally-produced goods on their online platforms.<\/li>\n
      5. All active e-commerce portals in India will have to register with e-Central Consumer Protection Authority (CCPA). CCPA shall act as a nodal agency for intra-government coordination, checking frauds within the industry, formulating regulations and more.<\/li>\n
      6. On the matter of discounts, the draft policy suggests a period for every discount and offer, beyond which no e-commerce portal can be allowed to provide discounts.<\/li>\n
      7. It recommends Centralized registration instead of local registration of e commerce companies.<\/li>\n<\/ol>\n

        Issues in e-commerce policy:<\/strong><\/p>\n

          \n
        1. Due to mandatory supervision of Competition Commission of India on Merger and Acquisition and regulation on discounts have led to apprehensions of return of license raj.<\/li>\n
        2. Data localisation norms in draft policy can discourage international firms to invest in India.<\/li>\n
        3. The FDI provision restricted to Indian firms may Influence the much the needed FDI in general and e commerce industry in particular.<\/li>\n
        4. The policy state that the Indian government must have access to e-commerce data at all times. This is a dangerous as it allows state surveillance, in the guise of safeguarding the privacy of Indian citizens.<\/li>\n
        5. The policy fails to distinguish between personal and collective data and treats all data as one whole.<\/li>\n<\/ol>\n

          Thus e-commerce policy need a relook. It need to resolve data issue and also need to relook at regulatory provisions. Discounts regulation can impact the sector and overall growth of Indian economy.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

          Demand of the question Introduction. Contextual Introduction. Body. Mention the need, provisions and issue of draft e-commerce rules, 2019. Conclusion. Way forward. E-Commerce is a business model \u201cenables a firm\/individual to conduct business over an electronic network, typically the Internet.\u201d The consumer and seller or service provider interaction gets better and efficient. E-commerce business in… Continue reading [Answered]Discuss the need and significance of draft e-Commerce Rules, 2019 in light of increasing tentacles of e-Commerce in Indian market.<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":49132,"parent":0,"menu_order":0,"comment_status":"open","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-60052","page","type-page","status-publish","has-post-thumbnail","hentry","entry"],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/60052","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=60052"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/60052\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/49132"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=60052"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}